Cork Airport: ‘Not a Dublin versus Cork issue’

THE Government’s attempt to resolve the bitter debt row between Dublin and Cork airports is “entirely flawed”, the country’s largest business network said yesterday.

In a strongly worded statement, Chambers Ireland also called on the Government to honour its 2004 debt-free commitment to Cork Airport.

The comments came as the process designed to break the impasse between the Dublin Airport

Authority (DAA) and the Cork Airport Authority (CAA) over who should carry the €200 million cost associated with Cork’s new terminal building gathered pace.

Transport Minister Noel Dempsey appointed industrial relations troubleshooter Peter Cassells last week to facilitate talks between the two airport boards.

He has been asked to finalise what amount the CAA has to pay to the DAA to facilitate separation, and report back to Mr Dempsey by March 7.

Mr Dempsey said if Mr Cassells cannot resolve the impasse, the Government will have to re-examine its policy of separating the airports from the control of the DAA.

Mr Cassells contacted both airport boards in recent days to discuss the mediation process.

Members of the CAA held a scheduled monthly meeting yesterday to discuss the issue but declined to comment afterwards.

“The CAA welcomes the appointment of Peter Cassells and we hope this will help to move the process forward. As we are entering a process we have no further comment at this time,” a spokesperson said.

But Chambers Ireland described Mr Cassells’ mandate as “entirely flawed”.

Dan Loughrey, the chairman of the chambers’ Air Transport Users Council, said the debt issue cannot be held over all three airports as a condition of unbundling.

“Aspects of the unbundling have already happened, for example the DAA replacing Aer Rianta, and this must not be reversed,” he said.

The State Airports Act, which replaced Aer Rianta with three independent airport boards, was passed three-and-a-half years ago.

“If the Government was willing to honour its own promise, all three airports would be allowed to operate as independent, commercial entities,” said Mr Loughrey.

He also said the Government must allow the CAA start commercial independence debt-free.

The related expense should be borne by Government and absorbed into the Exchequer, he said.

Developments at Cork Airport were essential from a national and regional development perspective, he added.

“The funding of infrastructural development at Cork Airport is not a Dublin versus Cork issue and should not be a consideration for either airport authority.”

The CAA and DAA have been at loggerheads for almost two years over the debt issue.

The Government pledged in 2004 that Cork Airport would start independent operations debt free.

However, the DAA has refused to accept the full cost of the terminal development, insisting the CAA carry at least €120m of debt.

The CAA has refused, and has repeatedly insisted that the Government honour its debt-free pledge.

Meanwhile, members of the DAA and CAA are due to attend a meeting of the Joint Oireachtas Committee on Transport tomorrow.